Macrotech Developers Considers Strategic Expansion into a Fourth City, Reveals MD Abhishek Lodha

Strategic Growth and New Horizons

Macrotech Developers, widely recognized as Lodha, with a strong presence in Mumbai, Pune, and Bengaluru, is contemplating expansion into a new city, marking a potential broadening of its operational landscape. Having recently ventured into the Bengaluru market in November 2023, the company adopts a cautious, step-by-step approach towards geographical diversification.

Bengaluru: A Promising Start

The Bengaluru venture has kicked off successfully for Macrotech, with plans to launch a second project in the city within the next three months, as disclosed by Abhishek Lodha, the company's Managing Director, during an earnings call with investors. This positive momentum has prompted considerations for gradual expansion into a fourth city, a decision that will be evaluated over the coming three to six months.

The Bengaluru Residential Market: A Lucrative Arena

Macrotech Developers highlights the Bengaluru residential market's substantial growth, currently valued between Rs 60,000 crore to Rs 65,000 crore, witnessing an 18 percent increase over the past four years. This market has seen a significant price surge, with a 40 percent increase over the last five years, marking a notable contrast to the preceding period's 10 percent rise.

Record-Breaking Launch

Rajendra Joshi, CEO (Bengaluru) at Macrotech Developers, recounted the successful launch of their inaugural project near Manyata Tech Park in North Bengaluru. The first weekend saw an impressive Rs 600 crore in presales, accounting for about 80 percent of the inventory. The company aspires to bolster its Bengaluru operations, aiming for a Rs 3,000 crore run rate in the next three to four years, supported by a strong local team skilled in sales, construction, marketing, and customer service.

Focus on Indian Expansion

Beyond its Indian projects in Mumbai, Pune, and Bengaluru, Lodha has undertaken ventures in the UK. However, the company's current focus is on amplifying its growth within India. This includes the recent acquisition of Goel Ganga Ventures India, emphasizing Macrotech's commitment to the Indian real estate sector.

A Long-Term Vision for Indian Housing

Lodha envisions a prolonged growth phase for India's housing industry, aligning with the country's transition from a low to mid-income status. This transition typically heralds an extended housing cycle, suggesting a vibrant future for the sector.

Despite a 17.6 percent decrease in net profit in the third quarter of FY24, Macrotech Developers reported a 67 percent surge in net sales, underscoring the company's robust performance amid expansion efforts.